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Elon Musk questions Donald Trump $500B AI mega-project funding

Elon Musk

Tech entrepreneur Elon Musk has expressed skepticism about the $500 billion artificial intelligence (AI) project recently unveiled by US President Donald Trump. Musk, a prominent supporter of Trump during the election campaign, questioned whether the funding for the ambitious initiative is actually available.

On Tuesday, President Trump announced the launch of “Stargate,” an AI mega-project spearheaded by Japanese conglomerate SoftBank and ChatGPT-creator OpenAI. The project aims to invest heavily in AI infrastructure across the United States. It plans to begin with an initial $100 billion and reach $500 billion over four years. Trump described the venture as transformative for American innovation and job creation.

However, Elon Musk cast doubt on the financial backing of the initiative. Posting on his social media platform, X, Musk asserted that the primary investors lack sufficient funds. He stated, “SoftBank has well under $10 billion secured. I have that on good authority.” Musk also appeared to target OpenAI, a company he co-founded but left in 2018. His departure followed disputes with its leadership.

Tensions between Musk and OpenAI’s CEO, Sam Altman, were evident during the announcement. Altman, who attended the White House event, responded to Musk’s comments with a direct rebuttal on X. He invited Musk to visit the project’s first site in Texas. Altman stated, “This is great for the country. I realize what is great for the country isn’t always what’s optimal for your companies. But in your new role, I hope you’ll mostly put the country first.”

Stargate’s initial funding reportedly includes contributions from Abu Dhabi’s AI-focused state fund MGX, Oracle, and other stakeholders. Additionally, technology heavyweights such as Microsoft, Nvidia, and SoftBank’s subsidiary Arm are listed as key partners. According to company officials, construction on a data center in Texas has already begun.

SoftBank’s founder, Masayoshi Son, appeared alongside President Trump during the announcement. The Japanese tycoon pledged an immediate deployment of $100 billion for Stargate. However, financial disclosures indicate that SoftBank has approximately $30 billion in available cash. Meanwhile, Oracle holds $11 billion in cash and securities. Additional funding is expected to come from limited partners and debt financing.

Despite Musk’s criticism, the White House and project stakeholders remain optimistic. Karoline Leavitt, a spokeswoman for President Trump, stated, “The American people should take President Trump and those CEOs at their word. These investments are coming to our great country, and American jobs are coming along with them.”

Reports suggest that SoftBank and OpenAI will each contribute $19 billion to Stargate, jointly holding an 80% stake. Meanwhile, Oracle and MGX are set to invest $7 billion each. The remaining funds will come from other investors. The project’s aim is to cement the United States as a global leader in AI innovation.

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